Business, 13.10.2020 03:01 Theresab2021

Hi, Sierra, 1. As your CPA, I'm happy to respond to your request for clarification of the tax status of profits from eBay.
2. Or one of the other online sellers such as Etsy, Amazon, and Bonanza.
3. As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business.
4. Tax liabilities should definitely be clarified.
5. Although no clear line separates fun from profit or a hobby from a business.
6. One thing is certain: the IRS taxes all income.
7. A number of factors will help you determine whether your hobby is a business.
8. To use eBay safely, the following questions should be considered:
9. Do you run the operation in a businesslike manner?
10. That is, do you keep records, is your profit and loss tracked, and how about keeping a separate checking account?
11. Do you devote considerable time and effort to your selling?
12. If you spend eight or more hours a day trading on eBay.
13. The IRS would tend to think you are in a business.
14. Some people depend on the income from their eBay activities for their livelihood.
15. Do you?
16. Are you selling items for more than they cost you?
17. If you spend $5 for a garage sale vase and sell it for $50.
18. The IRS would probably consider this a business transaction.
19. All profits are taxable.
20. Even for eBay sellers who are just playing around.
21. If you wish to discuss this further, please call me at 213-456-8901. Justin Corona

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Hi, Sierra, 1. As your CPA, I'm happy to respond to your request for clarification of the tax statu...

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